The proposed acquisition would result in overlap in the provision of ground handling services at Christchurch and Dunedin Airports.

The Commission is satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the markets for the provision of ground handling services for narrow- and wide-bodied aircraft at each airport in New Zealand.

"The merged firm would continue to face competition from various suppliers of airport ground handling services in New Zealand and Australia when the relevant contracts are next offered by airline customers," said Commerce Commission Chairman Dr Mark Berry.

A public version of the written reasons for the decision will be available soon on the Commission’s Clearances Register.